Wednesday, October 29, 2008

Sales tax collections for the majority of counties across the state were up considerably in the 3rd quarter due to the increase in the price of gasoline. Jefferson County's sales tax for the same period was flat as they do not collect sales tax on gasoline priced above $2.00 a gallon.

"Despite the economic downturn, counties in New York averaged a 3.5
percent increase in sales tax revenue for the third quarter of the
year, fueled in part by higher gas prices last summer."

"The amount counties collect in sales tax revenue is vital for them to
pay for services and programs. Since 1999, taxes collected on sales of
goods and services have surpassed the property tax as the largest
revenue source for counties."

"State Comptroller Thomas DiNapoli earlier this year warned counties
that a downturn in sales-tax revenue is likely, and counties said they
are preparing their budgets now with lower sales-tax growth projections."

This is not the only source of revenue that is jeopardized by the current economic conditions. state and federal revenues are going to take a hit, not only in 2009, but likely through 2012. Local governments, such as the County and Towns, who are preparing their budgets, would be wise to plan now for what the future might hold for them.